87.
When shares of another corporation are purchased, what is the effect on total
stockholders’ equity?
88.
When treasury stock is acquired, what is the effect on assets and stockholders’ equity?
89.
Treasury Stock:
90.
Which of the following statements about treasury stock transactions is true?
91.
Which of the following is TRUE regarding the accounting for treasury stock?
92.
What would be the impact on the accounting equation when a company acquires treasury
stock?
93.
The corporation’s own stock that has been issued and then repurchased by the company
is referred to as:
94.
When treasury stock is resold at a gain, the difference between its cost and the cash
received when resold:
95.
Crossroads Mall had 100,000 outstanding shares of common stock. On June 16, 2018,
Crossroads repurchased 20,000 shares of its own stock at $30 per share. On July 23, 2018,
Crossroads resold 10,000 shares at $28 per share. What net effect did the repurchase and
the resell of common stock have on the accounting equation?
96.
On December 2, Coley Corp. acquired 1,000 shares of its $2 par value common stock for
$27 each. On December 20, Coley Corp. reissued 400 shares for $15 each. Which of the
following is correct regarding the journal entry for the reissued shares?
97.
On November 6, Coleman Corp. acquired 1,000 shares of its $2 par value common stock
for $27 each. On November 20, Coleman Corp. reissued 400 shares for $30 each. Which of
the following is correct regarding the effect of the journal entry for the reissued shares?
98.
A company acquires 1,000 shares of its own $1 par common stock for $15 per share. This
purchase would be recorded with a:
99.
A company reissues 400 shares of its own common stock for $20 per share. The company
had acquired these shares two months before for $15 per share. The reissuance of this
stock would be recorded with a:
100.
On February 22, Brett Corporation acquired 200 shares of its $5 par value common stock
for $25 each. On March 15, the company reissued 70 shares for $30 each. What is true of
the entry for reissuing the shares?
101.
Retained Earnings represent a company’s:
102.
The Retained Earnings balance reported on the balance sheet typically is not affected by:
103.
The Retained Earnings balance reported on the balance sheet typically is affected by:
104.
The balance of Retained Earning at the end of the year represents:
105.
Retained Earnings:
106.
Journal entries to record cash dividends are made on the:
107.
On June 1, the board of directors declares a cash dividend to be paid on June 30 to
shareholders of record on June 15. On which date would the company record a credit to
the Dividends Payable account?
108.
The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1
par common stock. On the date of declaration, there were 50,000 shares authorized,
20,000 shares issued, and 5,000 shares held as treasury stock. What is the entry when the
dividends are declared?
A.
Dividends
9,000
Dividends Payable
9,000
B.
Dividends
9,000
Cash
9,000
C.
Dividends
12,000
Dividends Payable
12,000
D.
Dividends
12,000
Cash
12,000
Dividends [(20,000 – 5,000) × $.60]
Dividends Payable
109.
The following amounts represent totals from the first three years of operations. Calculate
the balance of Retained Earnings at the end of 2018.
2016
2017
2018
Net Income
$1,200
-$500
$2,300
Net Cash Flows
$500
$300
$2,800
Dividends
$200
$0
$200
Issuance of
Stock
$2,000
$0
$0
110.
The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1
par common stock. On the date of declaration, there were 50,000 shares authorized,
20,000 shares issued, and 5,000 shares held as treasury stock. Assuming the dividends
were declared on June 1, what is the entry on June 30 to record the payment of cash
dividends?
A.
Dividends
9,000
Dividends Payable
9,000
B.
Dividends Payable
9,000
Cash
9,000
C.
Dividends
12,000
Dividends Payable
12,000
D.
Dividends Payable
12,000
Cash
12,000
111.
The ending Retained Earnings balance of Lambert Inc. increased by $1.5 million from the
beginning of the year. The company’s net income earned during the year is $3.5 million.
What is the amount of dividends Lambert Inc. declared and paid?
112.
Over the first four years of the company’s life, the company earned the following net
income (loss): $6,000; $3,000; $6,000, and ($2,000). If the company’s ending retained
earnings is $10,000 after year 4, what is the average amount of dividends paid per year?
113.
Fashion, Inc. had a Retained Earnings balance of $12,000 at December 31, 2018. The
company had an average income of $7,500 over the next 3 years, and an ending Retained
Earnings balance of $15,000 at December 31, 2019. What was the total amount of
dividends paid over the last three years?
114.
Both cash dividends and stock dividends:
115.
The declaration and issuance of a stock dividend:
116.
The issuer of a 100% common stock dividend (large stock dividend) to common
stockholders should debit stock dividends for an amount equal to the
117.
The issuer of a 100% common stock dividend (large stock dividend) to common
stockholders should credit common stock for an amount equal to the
118.
The issuer of a 5% common stock dividend (small stock dividend) to common stockholders
should debit stock dividends for an amount equal to the